Payment of Benefits

Payment of Benefits

After Covered Employment Ends

Distributions of your 401(k) Plan account are permitted after you retire, terminate your Covered Employment, become Disabled or die. You may also be able to take a loan or distribution during Covered Employment, as described later.

To "retire" or terminate your Covered Employment you must do all of the following:

  • Stop working in Covered Employment and in work aboard any vessel. If your employment was based on employment as a port engineer, port electrician, or hull inspector, you must completely stop working in all jobs that involve a Licensed Officer's knowledge or expertise, including but not limited to, knowledge or expertise in construction, repair, operations or maintenance activities;
  • Take all your accrued vacation; and
  • Provide documentary proof that you have withdrawn from Union membership.

"Disabled" means based on medical evidence you are deemed to be totally and permanently unable to engage in employment. The Trustees shall be the sole and final judges of Disability. You will be required to submit to examinations by physicians selected by the Trustees. For more information on how to apply for Disability, contact the Plan Office.

If you die before receiving payment of your entire account, the balance of your account will be paid to your designated beneficiary. Death benefits will be paid in the form of a single lump sum. Your beneficiary may elect after your death to have payments rolled over. See the "Naming a Beneficiary" section in your Summary Plan Description for information on naming a beneficiary.

You may choose to have your Plan account paid: as a single lump sum payment of your entire account balance; or in 36, 60 or 120 monthly installments.

While you are receiving installments you can continue to make changes in your investment options. You may also at any time elect to receive your remaining account balance in a lump sum.

You may take a distribution of your 401(k) account when you are first eligible to do so, or you may leave your money in the 401(k) Plan and take it later. However, you must start taking distribution of your account by April 1 of the calendar year after the year in which you reach age 70 1/2 (unless you are still working in Covered Employment).

If your 401(k) account balance is less than $1,000, then it will automatically be paid to you in a single lump sum payment when you are first eligible to take a distribution.

The rules regarding rollovers and taxes are complicated. They are explained in your Summary Plan Description, but you are strongly advised to seek professional tax advice before receiving a withdrawal or distribution.

To apply for a distribution of your 401(k) account, contact the Plan Office directly and ask for the necessary application form.

At that time, you will be told what documentation you must supply with your distribution form. Your form is not complete until all necessary documentation is supplied. Once the necessary documentation is received, you can expect payment in two to three weeks.

The Trustees can recover any payments made in reliance on a false statement or any overpayments from the Plan.

Withdrawals During Covered Employment

Generally, you cannot withdraw money from your Plan account until you have ceased employment. But, under certain conditions described below you can withdraw money from your account while still in Covered Employment. You may take Hardship Withdrawals, Age 59 ¬Ĺ In-Service Withdrawals, or Qualified Reservist Distributions, or you may apply for a loan. Refer to your Summary Plan Description to see the rules for withdrawals.

Frequently Asked Questions


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MEBA Benefit Plans
1007 Eastern Avenue
Baltimore, MD 21202-4345
(410) 547-9111 or (800) 811-MEBA